Remodeled Live-Work
For Sale
$324,900
31 NE Kelly Avenue, Fort Walton Beach, FL 32548
Commercial for Sale, Fort Walton Beach, FL
Property Size1,159 SF
Lot Size0.17 Acres
Price / SF$280.33
Days on Market208
Property Features for 31 NE Kelly Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C-2
Directions
From Eglin Parkway turn west on Kelly Ave. The property will be on the left.
Subdivision
12 - Fort Walton Beach
Standard status
Active
APN
12-2S-24-0460-0021-0010
Lot size
0.17 Acres
Taxes and HOA fees
Tax Description
CINCO BAYOU LOT 1 BLK 21
Legal Description
CINCO BAYOU LOT 1 BLK 21
Amenities
dry sauna
outdoor shower
large storage shed with electricity
Listing Agency:
EXP Realty LLC
(888) 883-8509
Listed By:
Joshua D Legare · License #3511727
(850) 737-8830
Added: Feb 17
Changed: Sep 11
Last Checked: Sep 13 at 9:06AM
MLS# 996356
Copyright © 2026 Emerald Coast Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This remodeled 1,159-square-foot property is configured with four office spaces and one full bathroom, creating a practical setup for business operations with on-site living. C-2 General Commercial zoning supports the live-work format and also accommodates professional office, boutique retail, and service-oriented uses identified for the property.
Access is provided from both Kelly Avenue and Hughes Street, with four dedicated spaces at the front. A powered rear gate leads to a paved, enclosed driveway, and exterior electrical connections support RV parking. Improvements include a re-roof completed in 2015, replacement windows installed in 2017, and a tankless water heater. The sale also includes a dry sauna, outdoor shower, and an electrically powered storage shed. The property is minutes from downtown Fort Walton Beach, area beaches, Eglin Air Force Base, and Hurlburt Field.
Access is provided from both Kelly Avenue and Hughes Street, with four dedicated spaces at the front. A powered rear gate leads to a paved, enclosed driveway, and exterior electrical connections support RV parking. Improvements include a re-roof completed in 2015, replacement windows installed in 2017, and a tankless water heater. The sale also includes a dry sauna, outdoor shower, and an electrically powered storage shed. The property is minutes from downtown Fort Walton Beach, area beaches, Eglin Air Force Base, and Hurlburt Field.
Key Highlights
- 1,159‑square‑foot remodeled property with four office spaces and one full bathroom
- C‑2 General Commercial zoning supports a live‑work configuration
- Separate vehicular access from Kelly Avenue and Hughes Street
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$14,968
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.61%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$299,360
$299.4K
Cap Rate 7%
$213,829
$213.8K
Cap Rate 9%
$166,311
$166.3K
Market Conditions
NOI Build-Up for 1,159 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$24.3K $21.00/SF
− Vacancy
−$4.4K −$3.78/SF
EGI
$20.0K $17.22/SF
− OpEx
−$5.0K −$4.31/SF
NOI
$15.0K $12.92/SF
Area
Okaloosa County, FL
Vacancy
18.00%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$299,360
Cap Rate 7%
$213,829
Cap Rate 9%
$166,311
Alternative Uses
Best Use
Office B
$213.8K
$187.1K – $249.5K
NOI $14,968 @ 7.0% cap · market cap 4.61%
Second Best
Mixed Use
$201.2K
$176.0K – $234.7K
NOI $14,082 @ 7.0% cap · market cap 4.33%
Theoretical Best
Specialty Retail
$446.6K
$390.8K – $521.1K
NOI $31,265 @ 7.0% cap · market cap 9.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,305
Businesses Nearby
Explore this area
Business Placement
Demographics for 32548, FL
22,399
Population
14,040
Households
1.6
Avg Household Size
42
Median Age
31%
College-Educated
91%
High-School Grad
12.1 sq mi
ZIP Area
1,851
Density / Sq Mi
$63,857
Median Household Income
$37,725
Median Earnings
$1,281
Median Rent
$291,000
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Live-work space - C-2 zoning supports combined business and residential use with access from two streets.
Where is this live-work space located?
The property is located at 31 NE Kelly Avenue Fort Walton Beach, FL.
What is the asking price?
The asking price for this property is $324,900.
What are key features of this property?
This property features: 1,159‑square‑foot remodeled property with four office spaces and one full bathroom; C‑2 General Commercial zoning supports a live‑work configuration; Separate vehicular access from Kelly Avenue and Hughes Street
